What Formula Calculates the Sales Dollars Needed to Earn a Desired

question 53

Multiple Choice

What formula calculates the sales dollars needed to earn a desired profit?

• A) (fixed costs + contribution margin)/(1 - variable cost ratio)
• B) (fixed costs + desired profit)/(1 - variable cost ratio)
• C) (fixed costs + variable costs)/(1 - variable cost ratio)
• D) (fixed costs + desired profit)/(1 - sales ratio)

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